533 THE IRON INDUSTRY.
49 to 57 cents per ton, with, a general average of 52 cents. The cost to those who possess their own mines must be less than this, but it is hardly likely that it is less than 40 cents, after allowing for a sinking fund. The run of mine will average 31 per cent, in iron, but the ore carried to Westphalia is richer than this. It will run 35 per cent, in iron* and costs 75 cents per ton at the mines. The new freight rate is $1.40 per ton, giving a total of $2.15 per ton of ore delivered in Westphalia, or 6.14 cents per unit.
If the ore is smelted at the mine it is necessary to carry 1£ tons of coke from the Euhr.to Lothringen at a cost of $1.82 per ton of coke, as the freight on. fuel in Germany is one cent per ton per mile. This does not include the cost at the ovens, estimated by Kirchhofl! to be $2 for those who own collieries, so that the cost of fuel in Lothringen will be $3.82 per ton of coke or $4.80 per ton of iron. The ore for a ton of pig will cost $1.30, so that the total for ore and fuel sums up $6.10 in Lothringen and $9.10 in Westphalia. I am afraid that this estimate of Kirchhofl: assumes a good profit on by-products, but allows nothing for interest and depreciation.
It must be remembered, however, that Lothringen is not a great market. To the southwest is the frontier of France and the French steel works working on the same deposit, while on the northwest are the cheap labor and fuel of Belgium tapping the ore field in Luxemburg. To the south is the mountain barrier of Switzerland, to the east the coal field and iron works of the Saar, and to the north the smoking valleys of the Ehine and the Euhr. The steel must be carried a long distance and past the doors of active competitors. A great part of the output of Germany is sent over sea and a large part consumed in finishing mills in the northern districts, and, inasmuch as the coal of Westphalia is on the road between the mines and the market, the northern works _ need not necessarily succumb to the Minette district.
There is a chance for both ends working together, since cheap transportation must include ore going in one direction and coke in the other, and there is opportunity for reductions in charges. The German railroads are owned by the government, and offer a good argument against State control. Like all German official work, they are conducted with honesty, but with an immense amount of
* Journal I. and 8.1., Vol. II, 1902, p. 17.